Ceramic magnets are manufactured using powder technology techniques, meaning they can easily be magnetized or attracted to a magnet. Ferrites can be divided into two families based on their resistance to being demagnetized (magnetic coercivity).

Ferrite compounds made of mostly rusted iron (iron oxide) are extremely low cost, have excellent corrosion resistance. They are very stable and difficult to demagnetize, can therefore be made with both high and low coercive forces. Yogoro Kato and Takeshi Takei of the Tokyo Institute of Technology synthesized the first ferrite compounds in 1930

Permanent ferrite magnets are made of hard ferrites, which have a high coercivity and high remanence after magnetization. The high coercivity means the materials are very resistant to becoming demagnetized, an essential characteristic for a permanent magnet.